Two-Factor and Biometric AuthenticationĬustomers increasingly expect to be provided protection as part of the payments experience.There are numerous cybercrime prevention strategies, but I’ll briefly cover four that your payments platform provider should have in place to guard against cyber attacks. Investing up front, including selecting the right payments platform partner, requires effort and forethought, but it could save you from these costly repercussions in the future. For example, in 2021, surging ransomware losses caused the cost of cyber insurance premiums to nearly double in 2021, and some insurers dropped coverage entirely for companies that couldn’t demonstrate they and their payments platform provider have reasonable security protections in place. In addition, a payments platform provider that cuts corners may compromise the very protections you currently have in place to hedge against cyber losses. Invest in a secure payments platform now, or face the financial fallout when a security breach occurs. Your company may not be a mega-retailer like Target, yet this experience can teach billers that cybersecurity is always a “invest now or pay later” calculation. The company’s “buzz score,” which measures brand perception, dropped 45 points during the week after the breach and, in turn, profits dropped 46% in one quarter. According to one analysis, Target had to invest $100 million after the incident to improve its payments infrastructure, and another $100 million-plus in payouts to banks and credit card companies that had to reimburse customers.īut even more catastrophic was the hit to its reputation and customer trust. To illustrate how damaging a single cyberattack can be, it’s helpful to look at one of the most visible examples in recent history: the 2013 Target breach. However, they can choose a payments platform partner that expands and integrates digital bill payment, while effectively detecting and managing risk. Vendors, partners, and third parties in the payments delivery chain were responsible for 62% of system intrusion incidents in 2021, which may represent “larger trends that we’ve been seeing in the industry, in terms of the interconnected risks that exist between the vendors, partners and third parties,” according to the analysts.īillers can’t opt out of offering digital payment options-customers have already made their preferences clear.

The 2022 Verizon Data Breach Investigations report noted that ransomware attacks alone increased by 13% between 20-a larger jump than the past five years combined. Without an oversight program, the business and their customers could potentially be at risk of excessive declines or disputes, service interruptions, increased transaction costs, and security incidents. But before they get too far along that path, they should recognize that new payment types and channels add complexity to the payment delivery chain and require additional focus on vendor management.

What’s more, a significant group of consumers says it would be very convenient to have additional mobile payment options, such as PayPal (20%), Apple Pay/Google Pay (14%) and Venmo (10%).īillers are hurrying to get on board with these trends and make digital bill payment as easy and frictionless as possible. In our research we found that 54% pay using the biller’s website, 33% use the biller’s mobile app, and 8% pay remotely using cash at a retail location. More consumers than ever are embracing digital methods to pay bills.

Venmo security breach 2020